1. Which of the following is NOT used in ratio analysis which examines a venture’s performance?
a) qualitative analysis
b) trend analysis
c) cross sectional analysis
d) industry comparable analysis
2. Is there a limit to the debt ratio's value? (Select the best choice below.)
A. Theoretically, the debt ratio cannot exceed 70%. In practice, few creditors would extend loans to companies with exceedingly high debt ratios (> 70%)
B. Theoretically, the debt ratio cannot exceed 90%. In practice, few creditors would extend loans to companies with exceedingly high debt ratios (> 70%)
C. Theoretically, the debt ratio cannot exceed 80%. In practice, few creditors would extend loans to companies with exceedingly high debt ratios (> 70%)
D. Theoretically, the debt ratio cannot exceed 100%. In practice, few creditors would extend loans to companies with exceedingly high debt ratios (> 70%)